Brent crude oil exceeds $105 following Trump's statements on a truce with Iran
Kyiv • UNN
The price of Brent reached $105 due to Trump's statements regarding the collapse of peace with Iran. The global market is losing oil supply due to issues in the Strait of Hormuz.
Oil prices continued to rise after U.S. President Donald Trump questioned the prospects of a ceasefire with Iran. This was reported by Bloomberg, according to UNN.
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Brent crude traded near $105 per barrel after a 2.9% jump the previous day. U.S. WTI approached $99 per barrel. Markets reacted to Trump's statement, in which he described the truce between the U.S. and Iran as being on "massive life support."
The U.S. President also criticized Tehran's latest peace proposal. According to Bloomberg, Iran is demanding the lifting of some sanctions and the easing of the naval blockade in exchange for reducing tensions around the Strait of Hormuz.
Strait of Hormuz remains the primary risk
Despite the formal ceasefire since early April, the situation in the region remains unstable. Due to attacks on vessels and risks to shipping, the supply of oil and gas through the Strait of Hormuz has become significantly more difficult.
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Bloomberg Economics analysts believe that a full-fledged peace deal will not happen in the near future. According to their forecast, the U.S. and Iran could return to reciprocal strikes, although the hostilities are likely to be limited in nature.
Amid rising prices, the U.S. has already begun a new wave of emergency oil purchases in an attempt to curb rising fuel costs. Meanwhile, Saudi Aramco stated that the global market is losing about 100 million barrels of oil every week due to problems with passage through the Strait of Hormuz.